How Can A Small Business Support And Maintain Their Benefits Offering
Pacific Prime prides itself on its after-sales support services, a commitment you likely wont find elsewhere. Our consultants can help develop a communication plan to promote engagement and benefits understanding with your staff, can answer all benefits-related staff enquiries on behalf, and will work with your senior leaders and decision makers at renewal to ensure that youre always aware of the performance and sustainability of your employee benefits package before you decide to recommit to them.
What Is An Employee Benefit
Employee benefits are the additional perks that come with a job aside from a basic salary. Health insurance is usually part of a traditional employee benefits package provided by employers. However, due to a competitive business world, many businesses now offer employees much more. Employee benefits have become a valuable tool in retaining the top talent.
Some popular perks include:
- Financial benefits, like paid time off , loan repayment plans, financial literacy programs, employee stock options , commissions and other bonuses.
- Health care reimbursement and spending accounts, such as flexible spending accounts , health savings accounts , health reimbursement arrangements and premium only plans
- Supplementary health care benefits like life insurance, dental and vision insurance, prescription drug coverage and employee assistance programs
- Other unique voluntary benefits, including gym memberships, yoga classes and pet insurance
Paying A Greater Share
Another strategy I like to recommend to my clients is to consider paying a greater share of employees health insurance even increasing their family coverage contribution instead of just giving employees a raise. As an accountant, I like that there are significant tax savings to be realized because health-care premiums are usually nontaxable to employees . Employers wont have to pay federal and state payroll tax on health-care contributions as they would if just giving a salary increase. In the end, the employee is still seeing a higher net paycheck and the business owner is saving money.
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Employee Health & Wellness Initiatives
Mental health awareness in the workplace has become a hot topic over the past few years, especially since the recent pandemic. As a result, many employers are now looking for ways to promote employee mental health. And one such way is including employee health and wellness initiatives in their employee benefits packages.
Promoting employee health and wellness is important for your reputation and employer brand. But it is also important for the bottom line of your business. This is because mental health issues can have a negative impact on the overall performance of your organization. Its therefore important to do what you can to support the mental health of all your employees.
Here are some simple yet effective ways of promoting mental health awareness. You might consider including some or all of these in your small business employee benefits packages:
How Much Do Benefits Cost A Small Business
Depending on what’s being offered, some employee benefits don’t cost small businesses anything. Some benefit plans do not need any funding from an employer , such as a flexible spending account for dependent care expenses as well as dental and vision insurance, which can be paid completely by the employee who enrolls in the plan. Depending on the size of your business, you may also be eligible for a small business health care tax credit if you offer healthcare to employees.
To further minimize costs associated with your small business employee benefits program, consider non-traditional benefits, such as flex scheduling, employee assistance programs, or telecommuting. You can also include low-cost benefits such as paid time off enhancements, free meals, or rewards for a job well done to incentivize employees.
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Find A Health Insurance Plan With Ehealth
To find the best benefits package small business owners in your area prefer, you can use eHealth to find the best group health insurance options for you and your employees. If you need further assistance, you can speak with one of our licensed insurance agents, who can help guide you toward the best solution.
This article is only for general information and is not tax, accounting, employment, or legal advice. Consult your own tax, accounting, employment, or legal advisor for guidance.
Flexible Hours And Telecommuting/remote Work
Flexible hours and telecommuting are employee benefits that allow employees to have a more flexible work schedule. Flexible hours may involve working fewer hours overall or working different hours on different days. Telecommuting allows employees to work from home, either all or part of the time.
Flexible hours and telecommuting can be beneficial for employees who have children or other obligations outside of work. These employee benefits can also help reduce traffic and save employers money on office space.
Employers may offer flexible hours and telecommuting as employee benefits to attract and retain employees. Some employers may require employees to work a certain number of hours per week or to be available during specific hours.
Why Offer Employee Benefits
More and more SMEs are offering a benefits package to look after the health, happiness and wellbeing of their staff. While a hefty pay packet will go some way to attracting talent, extra perks outside of the wage structure can also help recruit and retain the best people.
Only 41% of workers feel satisfied with their benefits, according to a survey by the CIPD. If true, then employee benefits can provide a key competitive advantage in recruiting the best employees and fostering loyalty within your team.
Theres only one problem: budget. Any employee benefits package has to be both affordable and capable of addressing the needs of current and prospective staff.
Its a tricky balancing act, and a key reason why getting one-to-one professional and unbiased advice is so important.
What Benefits Packages Should Smes Offer Their Employees
Small business employee benefits will vary from organisation to organisation. What benefits your SME might offer could depend on everything from its location and the industry it operates within to the demographics and interests of the workforce.
Some benefits might include:
More paid leave. Offering more annual leave is one of the most attractive benefits a business can offer. It can even be as simple as giving employees their birthday off.
Flexible working. SMEs that cant offer flexible schedules and remote or hybrid working options will struggle to compete for talent with businesses that can.
Private health insurance. While it might be prohibitively expensive for some SMEs, offering private health insurance can be a differentiator when it comes to recruiting.
Wellness-related perks. Offering cycle-to-work schemes, bonuses for meeting monthly step targets, and virtual fitness classes show that SMEs care about workforce wellbeing.
Entertainment perks.Subscriptions for unlimited cinema tickets or annual passes to local attractions can help workers unwind and de-stress.
These are just some potential small business employee benefits. From offering free snacks and onsite game rooms to travel vouchers and home-working tools, todays SMEs are powering up their benefits packages to drive employee engagement in the new normal.
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Choose Extra Benefits You Want To Offer
Non-mandated employee benefits are up to you to include. Benefits packages are significant considerations when individuals evaluate job offers. Employers know this and are wise to offer competitive packages wherever possible.
You get to decide what non-mandated benefits you want to offer. Here are a few options you might want to consider:
- Health coverage Burnout is inevitable sometimes, especially during peak seasons. Keep employees healthy and reduce absenteeism by making sure they have a reliable and affordable health plan when things go sideways or just need a tune up.
- Life insurance Protect your team members families by allotting a certain amount to cover their beneficiaries in the event of death.
- Disability insurance Look out for your staff by setting up a contingency allowance that can replace their income if they cannot work due to accidents or unexpected illnesses.
- Retirement savings plans Offering contributions to retirement plans, such as a 401, can help you stay competitive. You can even go above and beyond by setting up an employer matching program, wherein you match your employees contribution, to encourage a long-term career.
- Paid time off Most employees expect companies to offer paid time off for national holidays, vacations, and sick leaves .
Consult with your tax professional on what makes the most sense for your company and employees.
Flexible Working Hours And Remote Work Options
Flexible work schedules are more important today than ever before. Employees want to know that they can easily attend doctor appointments, family events and other obligations without getting penalized. By offering flextime and giving employees the chance to set their own hours or work during a certain time period, you can attract and retain more employees. Allowing your workers to work remotely, either full time or a few days a week, is another perk you should explore.
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Questions To Ask When Shopping For A Dental/vision Insurer For A Small Business
Obtaining dental or vision care from in-network providers typically results in cost savings for your employees. A large dental network covers an extensive geographical area and includes both general dentists and specialists, such as pediatric dentists and orthodontists. A large vision network will include local private eye care practices plus retail outlets and even online options. If your business is local and you have a handful of employeesand they all happen to be young singlesyou may not value a large network or a wide selection of specialists. But if your staff is demographically diverse and located in different parts of the state, an extensive provider network will most likely be a must.
Ask the carrier for a detailed network map or list.
2. Where are the network providers located?
This is another way of testing the strength of the insurers provider network. Check if the participating dentists and eye doctors are conveniently located near work or your employees homes. Also find out if they are accepting new patients.
Ask the carrier for an online provider directory and do some spot-checking.
3. Does the carrier provide local support to its networks?
Insurance companies that provide education and training tools about how they operate tend to establish highly productive partnerships with their network providers. Ask the carrier what they do to serve their participating dentists and eye doctors.
Are Any Benefits Required
In some states, there are certain requirements for a small business benefits plan. For instance, in the state of California, you must have the following:
- Workers compensation insurance, often known as workers comp. This type of insurance plan covers treatment costs for injuries sustained at work, such as during roofing.
- Unemployment insurance, which is not only required through the state but also federally. This covers the costs for people who are fired or laid off from their jobs unexpectedly. If youre a small business owner, its a good idea to research into getting UI to keep your employees minds at ease, and it is also law to pay into state unemployment insurance and the Federal Unemployment Tax Act.
- Disability insurance, which pays an employee in case they suddenly become disabled. While not every state requires this type of insurance, certain states, including California, Hawaii, New Jersey, New York, and Rhode Island, will require this type of insurance.
- Health insurance is required in small business employee benefits packages if there are more than 50 employees at your small business.
Depending on what state you operate in and the size of your business, youll want to look into the requirements your business must adhere to.
Health Insurance In A Small Business Benefits Package
This might be the first thing an employee is going to expect out of a benefits package. Luckily for you, group health insurance comes in many shapes and sizes to fit your specific budget and needs. One big difference between plans is whether its a Preferred Provider Organization plan or a Health Maintenance Organization plan.
HMO plan: An HMO plan may have lower premiums than a PPO, but with those lower costs comes less flexibility. If you include this plan in your small business benefits package, your employees will probably need to have a primary care doctor that they coordinate with to get referrals for specialized care. Employees might also be required to receive medical care in-network, which means only working with doctors and hospitals who have a partnership with the insurance provider.
PPO plan: In simple terms, a PPO is an organization that works with contracted medical providers to create a network. You can use this provider network, but might also have the flexibility to choose doctors outside the network by paying more. With this type of plan, you typically do not need to have a primary care provider. You dont usually need to get referrals for specialists or advanced care. This plan might have higher out-of-pocket costs than alternatives such as a HMO.
What Are The Eligible Hsa Expenses
If your medical expense is not listed, send us a message or call: 1-888-668-8384.
Some of the most frequently claimed eligible expenses include laser eye surgery, dental treatment, physiotherapy, massages, eyeglasses, and prescription drugs. In most cases, an expense will qualify as long as it is related to a personal medical requirement.
NOTE: All questions and answers below are pertaining to the HSA GROUP plan only.
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Examples Of Common Small Business Employee Benefits
When job seekers are looking for a new position, you might think the most attractive feature about a new position would be a higher salary. However, studies show this isn’t always the case.
Our 2022 Employee Benefits Survey Report found that if an organization had an extra $200 to give each employee per month, 42% of employees would rather have a new employee benefit than a wage increase.
Employee benefits are any form of indirect compensation paid to employees over and above regular salaries or wages. This can include health insurance, retirement benefits, and paid time off, for example.
Employee benefits come in many forms and are an essential part of the overall compensation package offered to employeesespecially for small and medium-sized organizations that oftentimes can’t afford to offer higher salaries.
This article will outline common examples of small business employee benefits that business owners should work into their employee benefits package to better attract and retain top talent.
Healthcare And Dental Benefits
An employee benefit that helps pay for medical expenses is health insurance. Health insurance plans vary in terms of the services covered, the deductibles and copayments required and the premiums charged. Health insurance plans can be offered by employers, health insurance companies or the government.
There are several different types of health insurance plans, including PPOs, HMOs and HDHPs. PPOs allow employees to see any doctor or specialist without a referral. HMOs require employees to select a primary care physician who will coordinate their care. HDHPs have high deductibles but lower premiums.
An employee benefit that helps pay for dental care expenses is dental insurance. Dental insurance usually pays for preventive measures, such as teeth cleanings and X-rays, as well as common procedures such as fillings or a tooth removal. Some dental insurance plans also cover major procedures, such as crowns and bridges.
Employers can offer health insurance and dental insurance as part of a group health plan. A group health plan is an employee benefit plan that is sponsored by an employer and provides health and/or dental coverage to employees and their dependents.
Transgender-inclusive health benefits are employee benefits that cover medically necessary care for transgender employees. Depending on the provider, this type of coverage may include hormone therapy, mental healthcare and surgical procedures.
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What To Expect In Your Benefits Package
This is a question most new employees want answered. But what does a good small business benefits package look like? Forbes defines a good small business benefits package as health insurance, some life and disability insurance and probably a retirement savings plan. But this might not apply strictly to every small business in the marketplace. And if you do offer all those benefits, there are plenty of different plans that offer those benefits.
What Are The Elements Included In A Great Employee Benefits Package
With the help of Benefit Concepts, your business can customize benefits packages for your employees based on their desires and needs. However, there are several benefits that should be considered standard. These include the following:
Health Care Flexible Spending Accounts
If you are not sure which benefits to include in your customized packages, we can help. Simply tell us your needs, and well get back to you immediately.
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What Are The Employee Benefits Packages
An employee benefits package is a group of non-wage perks that increase an employee’s pay. What a firm gives in terms of benefits is totally up to them, and it may change for each employee based on the specific requirements of their role. It is critical to consult with your accountant to see whether any benefits are taxed in your circumstance.
A complete employee benefits package includes paid time off, disability insurance, a retirement plan, health and dental insurance, and occasionally perks specific to the business. Some perceive benefits as an HR and administrative problem, but with the appropriate approach, they can become a full recruitment and engagement tool.
An assortment of benefits and unique offers are included in an employee benefits package. These things, which are frequently referred to as “non-wage perks,” include a variety of resources workers can use to look after themselves and their families, strike a healthy work-life balance, save money, and more. Some perks, like health insurance, are required by law in certain circumstances, but others, like paid time off , are provided to entice top talent to work for a specific organization.